Ethereum Technical Analysis: How to Trade

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Ethereum is the second most relevant cryptocurrency in the crypto world, after Bitcoin.

It’s a crypto asset that has other utilities, beyond just accumulating value over time.

Currently, thanks to Ethereum, thousands of projects of all kinds such as Decentralized Finance or NFTs have emerged.

This makes the native token of the Ethereum network (ETH) necessary to trade in all these emerging projects, simultaneously increasing the demand and price of ETH.

To learn more about Ethereum, here is an analysis and forecast of its chart in depth. I will update it every 15 days, so you don’t miss anything. 😉

Chart of Ethereum (ETH)

This chart shows a clear long-term uptrend. Right now (June 13, 2025), Ethereum is trading around $2,500.

The price has been dropping throughout 2025, which could present a solid opportunity to look for good entry points.

So, what’s going on?

ethereum trend chart

Technical Analysis Ethereum

It’s important to read charts and their context well, such as detecting supports and resistances, checking the trend of the chart, etc.

What technical indicators does today’s Ethereum chart show?

1- Supports and Resistances

Supports are below the price and resistances are above.

Where are the levels located on this chart?

ethereum supports and resistance

Although we started the year with sharp drops, it looks like Ethereum is starting to get back on its upward path toward $2,700.
Were you able to catch this move?

 

2- Where to Enter and Where to Exit

If you intended to manually exit the operation, you can forget that idea.

Placing your entry, exit, or even the stop loss correctly is important.

You should consider what kind of investor you are. If you want to buy Ethereum for the long term (holder), you would wait for support zones to accumulate positions. You wouldn’t mind much if the price fluctuated.

However, if you like to trade (swing trader), you need to be clear about where to place your entry, your stop loss, and your risk.

ethereum trading opportunities

In this case, looking at the current price, we have two possible options:

  • Wait for a breakout and pullback around the $2,700 level (a very significant support)

  • Wait for the price to continue dropping and bounce off the $2,300 or $2,000 zone

As you can see on the weekly chart, the price could even drop back to the $1,000 area, although that seems less likely.
What do you think?

 

3- Weekly Average

You may have noticed that in the charts of the medium-term strategy (weekly charts) there is always a moving average.

My advice is that you clearly define two colors in your moving average for when it rises or falls. When the average constantly changes color, it is indicating a lateral phase.

I have configured it in the following way:

  • The blue color indicates bullish moments.
  • The red color indicates bearish phases.

 

moving weekly average

The weekly moving average has been trending down for several months, and the price is still falling.
Right now, the price-to-value tension is practically zero due to the recent rally we’ve seen.

We need to wait for the price to stabilize at one of the key levels before a new upward move can begin.
Do you see it clearly? What decision would you make?

 

4- Divergences

Divergence is the opposite of convergence.

If converging means “directing towards the same point,” diverging is “behaving in the opposite manner.”

Thus, in technical analysis, a divergence occurs when the price and an indicator have opposite behaviors at their extremes. That is, one rises and the other falls.

Let’s analyze the Ethereum chart. At first glance, what do you detect?

ethereum divergences

On the weekly chart, we had seen a decline in one of the indicators we usually follow (MACD). Right now, the MACD is in positive territory and rising along with the price, so there’s no clear divergence.

5 – Price Structure

Technical analysis serves to predict what the price will do. We often use different techniques such as divergences with indicators, trend lines, patterns, etc.

But the most important thing is what the price is “drawing,” what you will know as price structure. No asset moves in a straight line constantly. Sooner or later, there is a lot of tension in one direction, and there is an imbalance between buyers and sellers that needs to be rebalanced.

This causes the price to create the famous swings or impulses and retracements, which are creating structures of highs and lows in one direction. Understanding how these movements are created will give you clarity when detecting the trend of the asset you are looking at.

What’s happening with Ethereum?

ethereum price structure

I’ve marked the recent price movements on the candlestick chart. We can clearly see a bullish structure in Ethereum—in fact, it’s pushed up strongly, and even though it’s currently moving sideways, it’s still making new highs, confirming the trend.

So, what could happen next? We’re seeing a strong rally that’s pushed the price to high levels, creating a lot of tension—but that’s actually a good thing if you’re looking to buy low. This past week, we’ve seen a solid bounce to the upside.

In times like these, it’s crucial not to get carried away by FOMO and stick to your strategy. Wait for a potential return to the $2,300 support zone to look for a better entry. Also, keep a close eye on whether the price breaks above $4,000—that would signal two key things: a resistance breakout and a new high, confirming a bullish price structure shift.

6 – Volatility

Volatility is usually a sign that the price is accelerating in a direction.

To understand the volatility Ethereum has, you’ll need to look at the candlesticks.

Remember, the interpretation of Japanese candles in trading is a matter of common sense.

 

ethereum volatility

 

On the chart, we’ve highlighted (in orange) the recent periods of high volatility in Ethereum.

What stands out is how this volatility has consistently aligned with sharp drops, clearly showing the presence and pressure of strong hands driving the downtrend. There’s little doubt about their intention during this phase—they’ve been pushing the price lower with conviction.

That said, the recent rebound includes three strong bullish candles, which is a notable shift in momentum. While it’s too early to call a trend reversal, if this buying pressure continues, we could be witnessing the beginning of the end of the bearish structure.

What’s your view?
Are we seeing early signs of a reversal, or is this just a temporary bounce before another leg down? 🧐

Forecast with Ethereum

If you’ve made it this far, it’s because you’re truly interested in what’s next for Ethereum.

I’m no fortune teller, and I’m not trying to be one—but in the short term, it’s pretty clear that Ethereum is likely to keep climbing. The strength of this rebound suggests as much. You could even wait to see if a bottoming pattern forms before jumping in.

That said, despite being the second-largest crypto by market cap, Ethereum has actually been one of the worst performers this year compared to the rest of the top 10. In fact, it still has a long way to go before retesting its all-time high of $4,800. So if the rest of the market keeps pushing higher, there could still be solid upside for ETH—and that’s something we could take advantage of.

We’ll have to watch it closely to see if it holds at the support levels we mentioned and gives us a solid entry signal, whether it’s a chart pattern or a confirming indicator.
Just remember—patience is key. Wait for your moment instead of trying to front-run the market.

What about you? What’s your game plan?

Trading with Ethereum

As you already know, trading with Ethereum is not easy. Therefore, it’s crucial to educate yourself first to become profitable. Remember to store Ethereum in the safest ETH wallet in the world, Material Ether.

And, of course, don’t forget to follow the Bitcoin chart with me. Don’t buy just because the price reaches support; always wait for confirmation of the stop. If you have doubts or questions, feel free to join our Telegram channel.

For more in-depth analysis, check out our trend analysis of Bitcoin.

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    Eva Robledo - Material Bitcoin

    Eva Robledo - Material Bitcoin

    Eva Robledo has specialized in both professional marketing and advanced SEO. She is currently working on various projects related to the world of trading, cryptocurrencies, and finance. With extensive experience in content creation for these areas, among others, she brings valuable expertise to her endeavors.

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